Corporación América Airports (CAAP) Q3 2024 earnings summary

Executive summary

• Geographic diversification helped offset weak performance in Argentina, where macroeconomic challenges and declining domestic traffic pressured results, while Uruguay, Brazil, and Italy showed resilience and growth.

• Consolidated revenues ex-IFRIC12 declined 4.2% year-over-year to $404.7 million, mainly due to Argentina, with passenger traffic down 3.9% year-over-year.

• Adjusted EBITDA ex-IFRIC12 fell 15.9% to $145.4 million, with margin contracting to 35.9%, mainly due to Argentina's soft macro environment.

• Robust cash flow generation and a solid balance sheet, with net leverage at a historical low of 0.9x.

• Net income attributable to owners dropped 68.4% year-over-year to $14.7 million, with EPS at $0.09.

Financial highlights

• Total revenues ex-IFRIC12 decreased 4.2% year-over-year to $404.7 million; total revenue was $461.8 million.

• Adjusted EBITDA margin ex-IFRIC12 contracted by 5.0 percentage points to 35.9%.

• Commercial revenues dropped 6.6% year-over-year, impacted by lower cargo and duty-free revenues in Argentina and lower fuel revenues in Armenia.

• Cargo volumes increased 4.4% year-over-year, but cargo revenues declined 12% due to fewer storage days in Argentina.

• Total liquidity reached $605 million as of September 30, 2024, up 32% from year-end 2023.

Outlook and guidance

• A 124% increase in Argentina's domestic passenger tariffs, effective November 1, is expected to bolster revenues and support local operations.

• Signs of stabilizing macro conditions and strong international passenger numbers in October support a positive outlook for the remainder of the year.

• No further domestic tariff adjustments expected in Argentina for next year.

• Long-term strategy remains focused on disciplined capital deployment and accretive acquisitions.